Published on 3/23/2022 in the Prospect News Investment Grade Daily.
New Issue: Extra Space Storage details $400 million 3.9% notes due 2029
By Rebecca Melvin and Cristal Cody
Concord, N.H., March 23 – Extra Space Storage LP provided further details of its $400 million of 3.9% seven-year senior notes (Baa2/BBB), including the yield and spread, in an FWP filed with the Securities and Exchange Commission.
The notes, which priced on Tuesday at 99.885, have a yield to maturity of 3.919% and a spread of 150 basis points over the benchmark Treasury.
Price talk was in the 185 bps area over Treasuries, according to a market source.
They feature a make-whole call at a premium of Treasuries plus 25 bps prior to Feb. 1, 2029 and then a par call.
BofA Securities Inc., Citigroup Global Markets Inc., TD Securities (USA) LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and U.S. Bancorp Investments Inc. are the bookrunners.
The notes are guaranteed by Extra Space Storage Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II.
Proceeds will be used for potential acquisitions, to repay debt under the company’s lines of credit and for other general corporate and working capital purposes.
The retirement savings, investment and insurance products company is based in Des Moines.
| Issuer: | Extra Space Storage LP
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| Guarantor: | Extra Space Storage Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II
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| Amount: | $400 million
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| Issue: | Senior notes
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| Maturity: | April 1, 2029
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| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., TD Securities (USA) LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Wells Fargo Securities LLC, BMO Capital Markets Corp. and U.S. Bancorp Investments Inc.
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| Co-managers: | Truist Securities, Inc., Regions Securities LLC, BOK Financial Securities, Inc., Fifth Third Securities Inc., BNP Paribas Securities Corp., Zions Capital Markets and Samuel A. Ramirez & Co., Inc.
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| Trustee: | Computershare Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP, Venable LLP and Verrill Dana LLP
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| Counsel to underwriters: | Fried, Frank, Harris, Shriver & Jacobson LLP and Ballard Spahr LLP
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| Coupon: | 3.9%
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| Price: | 99.885
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| Yield: | 3.919%
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| Spread: | Treasuries plus 150 bps
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| Call option: | Make-whole call at Treasuries plus 25 bps prior to Feb. 1, 2029, then par call
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| Pricing date: | March 22
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| Settlement date: | March 31
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| Ratings: | Moody’s: Baa2
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| S&P: BBB
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| Price talk: | 185 bps area over Treasuries
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| Cusip: | 30225VAH0
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